Highlights of Budget 2021

New Budget Updates: Economic revival as the prime focus & more!

Tuesday, 2nd February 2021

The Budget 2021-22 has been presented by Finance Minister Nirmala Sitharaman in the Parliament on February 1st.

The focus of this budget was on reviving the economy and the seven pillars towards that goal. These are Health and Wellbeing, Physical and Financial Capital and Infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and R&D, and Minimum Government Maximum Governance.

The Financial Year 2021-22 has been allotted a total capital expenditure of Rs 5.54 lakh crore. The FM also came up with a new scheme that is sponsored centrally and has an outlay of about Rs 64,180 crore over a period of 6 years-  PM Aatmanirbhar Swasth Bharat Yojana.

For Health and Wellbeing, the Budget outlay has been raised by about 137% year-on-year and is nearly Rs.2, 23,846 crores for FY 2021-22.

Direct Tax Proposals:

• It has been proposed that senior citizens aged 75 and above are to receive the relaxation in IT
• Other than in cases of serious tax evasion, there is to be a reduction in time for IT proceedings
• There will be the constitution of the ‘Dispute Resolution Committee’
• Provision will be made for National Faceless Income Tax Appellate Tribunal Centre
• Tax incentives to start-ups whereby tax holiday extensions made up to 31st March, 2022
• Relaxations in double taxations for NRI
• Pre-filing of returns will be allowed
• Advance Tax on dividend income
• Disallowance of PF contribution
• Section 43CA stands amended
• Amendment to Section 44ADA and henceforth will be applied to only the resident individual, Hindu Undivided Family (HUF) or a partnership firm, other than LLP.
• Section 80EEA deduction extended

Indirect Tax Proposals:

• Few items on which Customs Duty Rates are revised are copper scrap, Basic and Special additional excise duty on petrol and high-speed diesel oil, solar lanterns, gold and silver, textile, chemicals, etc.

The exemption on the import of leather will be withdrawn.

 ‘Truant Customs’ a new initiative will be introduced for faceless, paperless, and contactless customs measures.

• CGST Act was amended for several provisions including Section 16, Section 50, Section 35 and 44

The News Talkie Bureau

Source

Indianexpress